Think tank Reform have recently produced a paper entitled 'Reality check: Fixing the UK's tax system'. It was a very timely report considering the expected budget. Reform's proposals would cut taxes on employment at a time when the economic recovery depends on business growth and increased work effort, and reduce complexity in personal taxes. They would restore the link between sound principles and tax policy making, improving stability and confidence. However, Mr Darling is expected to give a budget aimed at electioneering rather than sound economic thinking.
5 comments:
Dr Tempest,
You are right to examine the economy.
Years of Labour stealth taxes have caused enormous harm to the economy. Individuals and companies face Byzantine complexity when they try to sort out their tax affairs.
It is time to create a fair, stable and transparent tax regime. We need to bring balance back to taxes. The Government needs to raise enough to spend on Public services, but taxes shouldn't be so high that they stifle economic investment or growth.
Your blog is a timely reminder of these basic economic principles. Thank you.
The budget will cover financial plans. It is therefore guaranteed to be criticised as electioneering, but how could this be avoided?
NW Durham voter - thanks always for your comments
Malcolm Clarke - thanks for your comment. Many thanks also for the kind add to your blog. I'm delighted to see that the political debate is alive and well in North west Durham. I suspect you're right that any budget held so close to an election could be used for political posturing. However, want we need to hear is sound economic sense. Our country's balance sheet can afford nothing less.
Another great post. Incentives for business and simplification of the tax system are two things which have been sadly lacking in the last few years. They are essential to re-building the economy, paying off our debts and ultimately paying for a welfare state of which we might be proud.
Blimey, a Tory shrink! Last one I encountered was 25 years ago and a member of the Leicestershire huntin' set (Qourn) and would actually sometimes do his w/e rounds at the local 'bin' dressed in his full hunting regalia much to the amusement of his patients. I'm encouraged that you actually want to contribute to the process of government and your clinical experience will no doubt be an asset to your campaign and your party, but an economic model based upon continual growth (and a notion of trickle down) must be regarded as delusional. After all, how many planets-worth of raw materials do you think we have and do you think that any degree of equitable distribution of Earth's resources among nearly NINE BILLION mostly dirt-poor fellow shipmates is going to come about in a planned progressive manner? The double whammy of peak oil and planet overheating will ensure the future will be bloody and chaotic (check out Lovelock's recent prognostications), so an economic model aimed at helping as many Brits will survive through collective action and sustainable business practices is the only one that offers any hope at all.
Anyway, good luck to you.
---David Bramble (Cons Psychiatrist, Shropshire)
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